TTM Technologies(US:TTMI)2025-10-31 20:01Financial Performance - Net sales increased by $136.2 million, or 22.1%, to $752.7 million for the quarter ended September 29, 2025, driven by strong demand in aerospace and defense, data center computing, and networking markets [83]. - Gross profit for the quarter increased by $26.8 million to $156.7 million, with a gross margin rate of 20.8%, slightly down from 21.1% in the previous year [85]. - Operating income rose by $20.9 million to $71.9 million for the quarter, with an operating margin rate of 9.6%, up from 8.3% in the prior year [89]. - Total net sales for the three quarters ended September 29, 2025, increased by $340.2 million, or 19.0%, to $2,132.0 million compared to the same period in the previous year [84]. - Total segment sales increased by $137.5 million, or 22.2%, to $756.2 million for the quarter ended September 29, 2025, from $618.7 million for the same quarter in 2024 [99]. - A&D segment sales increased by $57.3 million, or 20.5%, to $336.8 million for the quarter ended September 29, 2025, driven by improved defense spending and strong demand in missiles and munitions [101]. - Commercial segment sales increased by $79.5 million, or 24.1%, to $408.9 million for the quarter ended September 29, 2025, primarily due to strong demand in data center computing driven by generative AI [105]. - RF&S Components segment sales increased by $0.7 million, or 6.8%, to $10.4 million for the quarter ended September 29, 2025, supported by stronger demand across various end markets [109]. - Total operating income increased by $20.9 million to $71.9 million for the quarter ended September 29, 2025, compared to $51.0 million for the same quarter in 2024 [99]. - A&D segment operating income increased by $12.6 million to $52.9 million for the quarter ended September 29, 2025, with an operating margin rate of 15.7% [103]. - Commercial segment operating income increased by $8.9 million to $60.0 million for the quarter ended September 29, 2025, with a margin rate of 14.7% [107]. Tax and Expenses - Total other expense, net decreased by $15.9 million to $10.1 million for the quarter, primarily due to lower unrealized foreign exchange losses [91]. - Income tax expense decreased by $1.9 million to $8.8 million for the quarter, influenced by tax impacts and deductions related to stock-based compensation [93]. - Income tax expense increased by $3.1 million to $21.6 million for the three quarters ended September 29, 2025, compared to $18.5 million for the same period in 2024 [94]. Cash Flow and Capital Expenditures - Cash flow from operating activities was $229.0 million for the first three quarters of 2025, up from $150.8 million in the same period in 2024, primarily due to a $75.6 million increase in net income [115]. - As of September 29, 2025, the company had cash and cash equivalents of approximately $491.1 million, with $199.4 million of available borrowing capacity under revolving credit facilities [118]. - Total capital expenditures for 2025 are expected to be between $265.0 million and $285.0 million, with approximately $54.0 million allocated for the construction of a new plant in Syracuse, New York [119]. - Cash generated from operations and available cash are expected to meet anticipated capital expenditures, debt service, and working capital needs for the next 12 months [123]. Debt and Compliance - As of September 29, 2025, the company had $916.6 million in outstanding debt, including $497.2 million in Senior Notes due 2029 and $337.4 million under the Term Loan Facility [121]. - The company was in compliance with all covenants under the Senior Notes, Term Loan Facility, and ABL Revolving Loans as of September 29, 2025 [122]. - Liabilities associated with supplier finance program obligations amounted to $12.2 million as of September 29, 2025, down from $17.2 million as of December 30, 2024 [124]. - There were no material changes to contractual obligations and commitments since December 30, 2024, impacting liquidity and capital resource needs [125]. Market and Operational Insights - The company announced the acquisition of a 750,000-square-foot facility in Eau Claire, Wisconsin, to enhance advanced technology PCB manufacturing capabilities [74]. - A new advanced technology PCB manufacturing facility is under construction in Syracuse, New York, with volume production expected to commence in the second half of 2026 [75]. - Sales to the ten largest customers accounted for 56% of net sales for the quarter ended September 29, 2025, compared to 54% in the same quarter of the previous year [77]. - The percentage of net sales by end markets for the quarter included 45% aerospace and defense, 23% data center computing, and 14% medical/industrial/instrumentation [78]. - The company experiences seasonal softness in the first and third quarters due to holidays and vacation periods, leading to stronger revenue in the second and fourth quarters [126]. - There have been no material changes to market risks as previously disclosed in the Annual Report for the fiscal year ended December 30, 2024 [128]. Stock Repurchase Program - The 2025 Repurchase Program allows for the repurchase of up to $100.0 million in common stock, with no shares repurchased in the quarter ended September 29, 2025; approximately 0.7 million shares were repurchased for $17.9 million in the previous program [120].